Friday, January 25, 2008
The Worst Ideas of 2007, Or How Not to Revolutionize Marketing
For some reason, the media industry was gripped by a bizarre delusion in 2007 - that consumers (!!) love (!!) brands [insert boardroom high-fiving here].
Obviously, they don't - as Yahoo has discovered the hard way, Honeyshed/Coke/auto guys are learning, etc, etc.
Like I've pointed out many times - there's a simple existence proof that this proposition must be false: if consumers loved brands, brands wouldn't have to advertise.
The point is: media's central challenge in 2008 remains what was in 2007 - to rethink the essence of branding, and create new modes of communication consumers really do love.
This would explain why Netflix's advertising budget is about 1/10th of Blockbusters, while they are twice BB's market cap.
85% of new subscribers to Netflix say they signed up because a friend or family member convinced themselves to do so.
93% of existing Netflix subscribers say they regularly evangelize the service.
By your logic, Netflix customers love their brand more than Blockbuster customers do. So, I agree with your assessment.
lots of brand devotees in this world, this week in india is a branding convention, and i don't know the answer to "are comsumers loyal to brands" question for sure
but i suspect that one hell of a lot of folks are fed up with advertising, to the point of taking revenge ... if you interrupt me, i will hate you forever .... it has gone beyond ignoring or switching off mentally
advertising is up there with intellectual property rights as things that are a long way from perfect
people innovate without incentive, people do buy things without incentive
the enterprise models based on advertising seem destined to fail, long term
The idea that brands don't have to advertise reflects a common misunderstanding of how advertising actually functions. You might enjoy digging around in some of the research links on this page.
Do you like Football?
I have a branding challenge that involves introducing a disruptive technology to the game (think 'big bertha') and has not built its brand strategy yet. As an investor, i have strong views on the importance of this.
If you are interested in discussing, email me at mark at my URL .com
consumers love brands that supply them with something! for instance, tools that promote sharing, creation, ego.
dont try and reinvent how a consumer wants to interact with you.
Honeyshed is a joke. period.